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A Checklist to Help You Get the Property Loan You Need

Everybody dreams of owning their own home. However, when they first approach a bank to find out if they can get a loan, they suddenly find out there is a lot more to it than simply making an application. This is why it may be useful to have a checklist at hand to make sure you do everything you need to do, and to do it right as well.

Types of Home Loans a Checklist Can Be Useful for
Florida home loans come in many different varieties. These include:
ï‚·Making your first ever home purchase.
ï‚·Refining the mortgage you already have.
ï‚·Debt consolidation.
ï‚·Equity release or cash out.
ï‚·Purchasing properties as an investment.
ï‚·Building a new home.
ï‚·Renovating or upgrading your own home.
Step 1 – Key Facts Sheet
The best thing to do is to approach a number of different lenders and ask them for their key facts sheet. These will tell you things like:
How much you will actually pay over the loan’s life.
ï‚·How much you will have to pay each month and what other options there are.
ï‚·Any charges and fees you need to pay.
ï‚·What the comparison rate is.

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Step 2 – Your Checklist

Now that you have your key facts sheet, you need to start working down your checklist. Things that you have to compare and look for when applying for a home loan include:
1.Find out the interest rate. You could have a variable rate home loan, for instance, but also a fixed interest rate, a split loan or a honeymoon loan. Make sure you check the comparison rate for each of these.
2.Next, check the repayment options. Look for additional repayments and redraw facilities, and how often you can make payments.
3.Look for the various fees and charges. You can expect there to be fees and charges for applications, exit, break costs, ongoing fees and additional charges.

Step 3 – Get Professional Advice
A lot of people actually start at this step and go straight to a mortgage advisor. It is much better for you to do this as step 3, after you have already learned a bit about what is out there. Remember that, up to this point, you haven’t actually applied for anything, which means your FICO score is also unaffected. Once the mortgage advisor gets involved, they will start to run credit checks, which will limit the different applications you can make.

These three steps will make sure that you get the best home loan that is out there. However, you also have to consider what your FICO score is, as this will greatly affect the type of loan you can access. Similarly, the amount of savings that you have will also be of great influence. It is very rare, if not unheard of, for people to be awarded 100% mortgages nowadays. Before you take step 3, therefore, you have to be ready and secure in the knowledge that you will actually be accepted.

By Jayvee Fernandez

Jayvee Fernandez is a tech enthusiast and sitting Techbology Editor for The Philippine STAR.

He is also an EAN certified SCUBA Diver and underwater photographer based in Metro Manila, Philippines. His photos and videos have appeared in various international and local publications including Random House Germany, Discovery Channel Canada, and CNN.

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